Technoglitch
Core Member
In the quarter ended in March, Bharti Airtel reported a 9.6% sequential growth in data volumes, its slowest pace ever. Data subscribers accounted for 23.2% of the total number users it added in the quarter, a tad higher than the 22.5% in the previous three months. For second-ranked Vodafone India, data volumes, or the amount of data consumed by subscribers, remained little changed, while the third-largest Idea Cellular reported a 1.5 % growth from the previous three-month period.
The slow pace of data consumption comes at a time when telecom operators are betting on high-speed Internet services to boost margins, as they expect rising disposable incomes, a young population and falling prices of smartphones to spur mobile data usage. Competition is also set to intensify in the industry as billionaire Mukesh Ambani's Reliance Jio is set to start nationwide fourth-generation mobile internet services this year.
"The rate of increase slowing down is a reflection of wary consumers waiting for better tariff plans and improved usage experience," said Arpita Pal Agrawal, leader for telecom practice at consulting firm PricewaterhouseCoopers. "In any market and for any product, there will be early adopters and then there will be people who want to experience it, then see the value and take on the service."
India is lagging behind many countries in rolling out high-speed Internet services, as the industry grapples with a lack of infrastructure. Penetration of third-generation Internet services is still less than 10% in the country, even though the service was launched in 2010.
India-Mobile Data: Bharti Airtel, rivals struggle to boost demand ahead of Reliance entry- Nikkei Asian Review
The slow pace of data consumption comes at a time when telecom operators are betting on high-speed Internet services to boost margins, as they expect rising disposable incomes, a young population and falling prices of smartphones to spur mobile data usage. Competition is also set to intensify in the industry as billionaire Mukesh Ambani's Reliance Jio is set to start nationwide fourth-generation mobile internet services this year.
"The rate of increase slowing down is a reflection of wary consumers waiting for better tariff plans and improved usage experience," said Arpita Pal Agrawal, leader for telecom practice at consulting firm PricewaterhouseCoopers. "In any market and for any product, there will be early adopters and then there will be people who want to experience it, then see the value and take on the service."
India is lagging behind many countries in rolling out high-speed Internet services, as the industry grapples with a lack of infrastructure. Penetration of third-generation Internet services is still less than 10% in the country, even though the service was launched in 2010.
India-Mobile Data: Bharti Airtel, rivals struggle to boost demand ahead of Reliance entry- Nikkei Asian Review
